Note: Follow ‘Overpayment notification (Action Guide)’ at PAYE47061 in all cases when dealing with an overpayment notification or repayment claim.

The use of Function OVERPAYMENT DISPOSAL is appropriate to provide the following types of disposal automatically for an overpayment arising in tax years CY-1 to CY-4 inclusive

To repay the whole overpayment to the employer or contractor

To reallocate the whole overpayment to the Current Year (CY)

Or

Transfer to the Permanent Overpayment account (POP) where the amount does not exceed £10

1.

Use Function OVERPAYMENT DISPOSAL to select the relevant year and disposal method

2.

Forward to your authorising officer

|
| | ### For overpayments relating to a year from 2005 onwards |
| | * A screen print of the View EOY Returns History Screen confirming the return Status Indicator (RSI) of RSI 2, unless the overpayment meets the criteria for making a provisional repayment as shown in ‘Provisional repayments (Action Guide)’ at PAYE47106 |
| | ### For overpayments relating to all years |
| | * A report giving full details of the overpayment and the reason why the overpayment has occurred, together with clear evidence to substantiate the overpayment |
| | * Screen print of BROCS EMPLOYER DATA SUMMARY (Format 2) |
| | * Screen print of BROCS POSTINGS SUMMARY (Format 3) |
| | * Any other evidence to substantiate the overpayment |
| | * Any supporting information from the employer record pad |
| | * A signed letter (plus 1 copy) to be issued to the employer or contractor advising them of how we have disposed of the overpayment. The letter should advise |
| | * That we have dealt with their request for repayment and either |
| | * That the amount will be reallocated / transferred

Or |
| | * That a further letter will be issued by the Accounts Office with their payment to confirm (once the amount has been authorised) the amount being repaid |
| | * That the repayment is subject to security checks that may delay repayment |
| | * Why the overpayment arose |
| | * Did they |
| | Forget to account for any incentive payments made |
| | Forget to account for an overpayment brought forward from a previous year |
| | Enter an incorrect amount on their form P35 for an advance or reimbursement |
| | * If appropriate, to restrict their next payment to Banking Operations by the amount reallocated to the current year |
| | Notes: |
| a. | Where the disposal instruction is ‘Repay’, the disposal will be subject to additional security rules and may be referred to the Repayment Security Officer for review. This may delay the release of the disposal. Further information can be found in ‘Using function overpayment disposal (Action Guide)’ at PAYE47126. |
| b. | A letter is not required when £500 or less is reallocated to the current year (CY) using Function OVERPAYMENT DISPOSAL because BROCS will automatically issue a letter. |
| 3. | On receipt of the overpayment your authorising officer will review the overpayment and consider authorising the disposal using use Function AUTHORISE OVERPAYMENT DISPOSAL

### Additional security checks

4.

Where the disposal type is ‘Repay’ the disposal will be subject to additional security checks after authorisation by the authorising officer

Where the disposal fails the checks it will be referred to the Repayment Security Officer (RSO) for further review before being considered for release

### ‘Overpayment Disposal Held’ list box

5.

The ‘Overpayment Disposal Held’ list box will display those disposals which have not yet been authorised by the AO or, where appropriate, the RSO

This will include

* Reallocations - until they are released or cancelled by the AO

* Permanent overpayments (POP) disposals - until they are released or cancelled by the AO

* Repayment disposals that have not yet been authorised or cancelled by the AO

* Repayment disposals that have been authorised by the AO, but have failed the security checks and are awaiting release or cancellation by the RSO

### Multiple Disposals

6.

Where a disposal instruction has been created for an employer and is awaiting authorisation, you cannot create a further disposal instruction for that employer, for the same year. You must wait for the existing disposal to be sent to BROCS before creating any further disposal instructions, for that year

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